Are Bitcoin Mining Contracts the Right Choice for You?
You may have been toying with plans of doing mining bitcoins and may have done a deep study of what it is all about. It is also possible you may have come across the two options that for mining. The CPU based home mining is ruled out in the present circumstances. The two choices are either upgrading your system and join a mining pool or to buy hash power by signing up with a cloud mining provider.
What is a mining contract?
Bitcoin mining contracts are an agreement between a miner and a service provider where you can buy hashing power at a fee. It is termed as a contract since you are committed to a pre-fixed amount of processing power. The service providers offer different plans for you to choose. You get a share of the rewards which is not a fixed amount.
While researching, you may have understood, mining is a volatile industry and there is no guarantee you will make profits all the time. That said, entering into bitcoin mining contracts with a reliable provider can get you rich dividends at times. Bitcoin is the highest revenue earning cryptocurrency. There is a one-time subscription fee you pay the mining provider and start earning your bitcoins.
Buying bitcoins can be an expensive affair and the best way to earn bitcoins without much investment is through the bitcoin mining. The mining with ASIC hardware is more cost-effective than the CPU/GPU mining. ASIC stands for Application Specific Integrated Circuit. The hardware is expensive and to gain good returns it is necessary to have the latest upgraded equipment.
The primary advantage of cloud-based mining contracts is that you do not invest any money in buying the mining hardware. Your cloud provider arranges it for you. There is a huge saving on electricity since the mining is done elsewhere at data centers away from your premises.
Choose your service with care:
In your eagerness to start mining and earning money, you should not enter into bitcoin mining contracts with anybody who promises high profits. The profitability can be calculated by noting in how many days you could gain back the money invested in your contract. This can be done by the current hashrate in your contract and the network. Deduct the approximate transaction fee and that should give you an idea of the profitability of mining.
At the same time, you also must check the reputation of the provider. Some bitcoin mining contracts have left people with losing their money as the providers turned out to be frauds. They can simply disappear. Some offer contracts for low periods but take a long time to settle the rewards. You will not find any profits and can be cheated. This has occurred with many miners in earlier occasions.
What is a mining contract?
Bitcoin mining contracts are an agreement between a miner and a service provider where you can buy hashing power at a fee. It is termed as a contract since you are committed to a pre-fixed amount of processing power. The service providers offer different plans for you to choose. You get a share of the rewards which is not a fixed amount.
While researching, you may have understood, mining is a volatile industry and there is no guarantee you will make profits all the time. That said, entering into bitcoin mining contracts with a reliable provider can get you rich dividends at times. Bitcoin is the highest revenue earning cryptocurrency. There is a one-time subscription fee you pay the mining provider and start earning your bitcoins.
Buying bitcoins can be an expensive affair and the best way to earn bitcoins without much investment is through the bitcoin mining. The mining with ASIC hardware is more cost-effective than the CPU/GPU mining. ASIC stands for Application Specific Integrated Circuit. The hardware is expensive and to gain good returns it is necessary to have the latest upgraded equipment.
The primary advantage of cloud-based mining contracts is that you do not invest any money in buying the mining hardware. Your cloud provider arranges it for you. There is a huge saving on electricity since the mining is done elsewhere at data centers away from your premises.
Choose your service with care:
In your eagerness to start mining and earning money, you should not enter into bitcoin mining contracts with anybody who promises high profits. The profitability can be calculated by noting in how many days you could gain back the money invested in your contract. This can be done by the current hashrate in your contract and the network. Deduct the approximate transaction fee and that should give you an idea of the profitability of mining.
At the same time, you also must check the reputation of the provider. Some bitcoin mining contracts have left people with losing their money as the providers turned out to be frauds. They can simply disappear. Some offer contracts for low periods but take a long time to settle the rewards. You will not find any profits and can be cheated. This has occurred with many miners in earlier occasions.
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